PRESENTED BY
Copyright © 2018 Kinaxis. All Rights Reserved.
Richard Monkman | CFO
March 2018
Kinaxis Investor
Overview
TSX:KXS
Copyright © 2018 Kinaxis. All Rights Reserved. 2
Forward-Looking Information
This document contains forward-looking statements within the meaning of applicable Canadian securities legislation. In some cases, these forward-looking statements can be identified by words
or phrases such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”, “seek”, “believe”, “potential”, “continue”, “is/are likely to” or the negative of these terms, or other
similar expressions intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and
financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs.
These forward-looking statements include, among other things, statements relating to: our expectations regarding our revenue, expenses and operations; our plans for and timing of expansion of
our solutions and services; our future growth plans; the acceptance by our customers and the marketplace of new technologies and solutions; our ability to attract new customers and develop
and maintain existing customers; our expectations with respect to advancement in our technologies; our competitive position and our expectations regarding competition; and anticipated trends
and challenges in our business and the markets in which we operate.
Forward-looking statements are based on certain assumptions and analysis made by us in light of our experience and perception of historical trends, current conditions and expected future
developments and other factors we believe are appropriate, and are subject to risks and uncertainties. Although we believe that the assumptions underlying these statements are reasonable, they
may prove to be incorrect. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. These statements are provided to assist external
stakeholders in understanding Kinaxis’ expectations as of the date of this document and may not be appropriate for other purposes.
Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other
factors, including those identified on page 3 of our Management’s Discussion and Analysis for the Fourth quarter ended December 31, 2017, and in our other public disclosure documents, which
are available under our profile on SEDAR (www.sedar.com). Although the forward-looking statements contained in this document are based upon what our management believes are reasonable
assumptions, these risks, uncertainties, assumptions and other factors could cause our actual results, performance, achievements and experience to differ materially from our expectations,
future results, performances or achievements expressed or implied by the forward-looking statements. The forward-looking statements made in this document relate only to events or information
as of the date of this document is made and are expressly qualified in their entirety by this cautionary statement. Except as required by law, we do not assume any obligation to update or revise
any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated
events.
Non-IFRS Measures
his document makes reference to certain non-IFRS measures, specifically Adjusted EBITDA. These non-IFRS measures are not recognized measures under IFRS and do not have a standardized
meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to
complement the IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, they should not be considered in isolation or as a
substitute for analysis of our financial information reported under IFRS. We use Adjusted EBITDA to provide investors with supplemental measures of our operating performance and thus
highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. We also believe that securities analysts, investors and other interested
parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to
period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements.
Adjusted EBITDA is not a recognized, defined or standardized measure under IFRS. Our definition of Adjusted EBITDA will likely differ from that used by other companies (including our peers)
and therefore comparability may be limited. Non-IFRS measures should not be considered a substitute for or in isolation from measures prepared in accordance with IFRS. Investors are
encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most
comparable IFRS financial measures.
For a reconciliation of Adjusted EBITDA to the most comparable IFRS financial measure please see the section titled, ‘Reconciliation of Non-IFRS Measures’ in the Company’s Management’s
Discussion and Analysis filed on SEDAR (sedar.com) dated December 31, 2017.
All amounts are in United States dollars, unless otherwise indicated.
Forward-looking statements
Copyright © 2018 Kinaxis. All Rights Reserved.
Short product and
delivery lead time
Global, outsourced,
multi-tier operationsHighly volatile
demand and supply
Today’s supply chain networks
are EXTENDED and COMPLEX
Copyright © 2018 Kinaxis. All Rights Reserved.
A single product that provides
customers end-to-end visibility and
planning, change simulation and
response coordination across their
supply chain networks.
In today’s world, the
ability to respond
to change is more
important than the plan
Copyright © 2018 Kinaxis. All Rights Reserved. 5
Investment Highlights – High Growth SaaS Model
STRONG REVENUE V IS IB IL ITY
US Dollars
(Millions)
REVENUE ADJUSTED EBITDA1SUBSCRIPTION REVENUE
2014
Q4 2
016
Q4 2
017
70.1
30.334.4
2015
91.3
14%QoQ
116.0
2016 2014
51.119%QoQ
2015
65.2
22.7
Q4 2
017
81.8
2016
27.0
Q4 2
016
6.4
11.2
2015
16.1
2014
Q4 2
016
Q4 2
017
33%
30.0
2016
21%
32%
25%
28.5
23%
24%CAGR
25%CAGR
1Adjusted EBITDA is a non-IFRS measure, for reconciliation of Adjusted EBITDA to profit before income taxes, please see “Management’s Discussion & Analysis”
133.3
2017
100.8
2017 2017
30%
40.1
73%QoQ
36%CAGR
Copyright © 2018 Kinaxis. All Rights Reserved. 6
Investment highlights
Industry-recognized, disruptive SaaS product
Growing blue chip customer base
Growing list of partners providing scale
Investing for accelerated growth, strong profitability
Strong management team
1
2
3
4
5
Copyright © 2018 Kinaxis. All Rights Reserved. 7
Rapidly growing market for SaaS-based
SCM solutions
2,000Opportunities in
current market
verticals served
~100 Current
customers
5,000Total potential
opportunities1 Forecast: Public Cloud Services, Worldwide, 2012-2018 2Q14 Update, 25 June 20142 Kinaxis internal study
Kinaxis’ market opportunity 2
2
22012
2018
$4.4B
Cloud Application
Market in SCM$1.5B
1
19.1%CAGR
Copyright © 2018 Kinaxis. All Rights Reserved. 8
Proven across multiple market verticals
HIGH TECH AND
ELECTRONICS
LIFE SCIENCES AND
PHARMACEUTICALS
AEROSPACE
AND DEFENSE
AUTOMOTIVE
INDUSTRIAL
CONSUMER
PACKAGED GOODS
Copyright © 2018 Kinaxis. All Rights Reserved. 9
Well established customer base, including blue-chip
enterprises
Copyright © 2018 Kinaxis. All Rights Reserved. 10
Consistently recognized as a leader and visionary in
supply chain
This graphic was published by Gartner, Inc as part of a larger research document and should be
evaluated in the content of the entire document. The Gartner document is available upon request
from Kinaxis.
Disclaimer: Gartner does not endorse any vendor, product or service depicted in its research
publications, and does not advise technology users to select only those vendors with the highest
ratings. Gartner research publications consist of the opinions of Gartner's research organization
and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or
implied, with respect to this research, including any warranties of merchantability or fitness for a
particular purpose.
Source: Gartner; As of May 2017
Magic Quadrant for Sales and Operations
Planning Systems of Differentiation
Given the configurability of
RapidResponse, it is an ideal solution
to take Enterprise companies through
the various stages of supply chain
maturity.
“…provides a consolidated view of the entire
supply chain, allowing real-time modeling and
collaboration…to plan for expected performance,
monitor progress and respond to issues”
OUR STRONG POSITIONING
INFLUENCES C-SUITE
INVESTMENT DECISIONS
Copyright © 2018 Kinaxis. All Rights Reserved. 11
Proven strategic partner model:
• Certified deployment professionals
• RapidResponse integrated into their business
• Dedicated and trained sales team
Strategic partner success driving growth
BROADENING THE REACH OF RAPIDRESPONSE THROUGH AN
EXPANDING PARTNER ECOSYSTEM
Copyright © 2018 Kinaxis. All Rights Reserved. 12
Supply chain planning needs a revolution
Impact on performanceBarriers to performance
Revenue at riskMarket uncertainty
Long time to detect
Long time to correct
Long decision cycles
Inability to collaborate
Inventory obsolescence
Unfilled customer orders
High expediting costs
Excess capacity
Copyright © 2018 Kinaxis. All Rights Reserved. 13
• Cascaded
planning
• Loosely
coupled
• Excel
dependent
• Narrow
functions
• Individual apps
and processes
• Optimization
focused
Modular, functional, sequential supply chain
planning has failed
Processes are siloed and legacy solutions only reinforce that.
Copyright © 2018 Kinaxis. All Rights Reserved. 14
• Single
solution
• Seamless
processes
• Concurrent
planning
• Integrated
• Cloud
Kinaxis connects the enterprise
End-to-end solution across multiple ERPs. Processes are connected and demand driven.
Copyright © 2018 Kinaxis. All Rights Reserved. 15
Kinaxis connects the enterprise
End-to-end solution across multiple ERPs
Processes are connected and demand driven
Copyright © 2018 Kinaxis. All Rights Reserved. 16
Lower Inventory CostsImproved On-Time Delivery
Actual customer results
Planning cycle(1)
Days to Minutes33%
20% less in 3 months
50% 80% 34%
1 TechFact, TVID:CD2-40A-D90 2 Kinaxis Internal Study 3 TechFact, TVID:589-4FF-2F6 4 TechFact,TVID:1A2-249-46E
20%
6 weeks
to 4 weeks
ASSESSMENT OF
DEMAND PLAN2
FINISHED GOODS
INVENTORY2
FINISHED GOODS
INVENTORY3
PLANNING
CYCLE1
OVERALL PRODUCT
LEAD TIMES2
CUSTOMER ORDER
CHANGES2
ABNORMAL
SCRAP4
INVENTORY
PRODUCTIVITY2
Copyright © 2018 Kinaxis. All Rights Reserved.
Planning is important
Responding to changes
to the plan is imperative
Copyright © 2018 Kinaxis. All Rights Reserved. 18
Business model provides visibility, stability & growth
NET REVENUE DOLLAR RETENTION
2-5
100> %
YEAR CONTRACTS
STABILITY
SUBSCRIPTION REVENUE GROWTH
FROM NEW NAME ACCOUNTS
SUSTAINABILITY
FORWARD TWELVE-MONTH REVENUE
80~ %
VISIBILITY
65%FROM EXISTING CUSTOMERS
|Multiple levers in revenue model:
▪ Discretionary pricing model
▪ Number of applications
▪ Number of sites
▪ Number of users
35%
▪ Renewal price escalator
~ ~
Copyright © 2018 Kinaxis. All Rights Reserved. 19
Financial results
1 Based on IFRS GAAP measures as at December 31, 20172 Adjusted EBITDA is a non-IFRS measures, for reconciliation of Adjusted EBITDA to profit before income taxes, please see
“Management’s Discussion & Analysis”
$ in USD millions FY 2017 YOY Change 2018 Guidance1
Subscription revenue $100.8 23% 23 – 26% (growth)
Total revenue $133.3 15% $158 – 163
Gross Profit $93.5 17%
Gross Margin 70%
Adjusted EBITDA2 $40.1 40%
Adjusted EBITDA margin2 30% 23 – 26%
Cash & cash equivalents $158.4 24%
Copyright © 2018 Kinaxis. All Rights Reserved. 20
Strong execution teamM
AN
AG
EM
EN
T T
EA
M Doug Colbeth (Chair)
• CEO from 2003-2015, led Kinaxis 2005 transition to SaaS
• Previously CEO of Spyglass
Ian Giffen (Independent Lead Director)
• Serves as an advisor and/or director to technology companies
and investment funds
• Director at Absolute Software and a number of private companies
Ronald A. Matricaria • Former CEO of a prominent health care organization
• Has over 35 years of medical device and pharmaceutical
experience
Angel Mendez• Former SVP Cisco Technology;
• Previously SVP of Global Operations, Palm
Jill Denham• Former Vice Chair at CIBC Retail Markets, and Director of the
OTPP Board
• Director at the National Bank of Canada and Chair of the Board of
Morneau Shepell
Bob Courteau• CEO of Altus Group Limited
• Previous corporate executive with SAP AG
John Sicard, Chief Executive Officer
• CEO of Kinaxis
John Sicard, Chief Executive Officer
• Key contributor to the architecture and development
of Kinaxis since 1994
Richard Monkman, Chief Financial Officer
• CFO since 2005; high-tech finance experience
(public and private)
Paul Carreiro, Chief Revenue Officer
• Joined Kinaxis September 2017
• Diverse global, operations and sales management
experience at both Infor & SAP
Sarah Sedgman, Chief Customer Officer
• Joined Kinaxis May 2015
• Extensive experience in the IT knowledge and learning
community: PTC University, Cognos, IBM
Trevor Miles, VP Thought Leadership
• Joined Kinaxis April 2008
• Developed a comprehensive supply chain background at i2
technologies and worked with industry leaders such as
Volkswagen, Nokia, and Thomson
Gelu Ticala, VP Product Development
• Joined Kinaxis in 2000 as an analytics software developer
• Manages the architecture, design, development, and testing
of RapidResponse
BO
AR
D O
F D
IRE
CT
OR
S
Copyright © 2018 Kinaxis. All Rights Reserved. 21
Land & expand model
Ongoing penetration of new vertical markets
Expand direct sales team, leverage channel partners
Invest in further product innovation
Invest in new data centres
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2
3
4
5
Kinaxis’ growth focus
MULTIPLE OPPORTUNIT IES TO INCREASE MARKET PENETRATION